An empirical investigation of US fiscal expenditures and macroeconomic outcomes

Yunus Aksoy and Giovanni Melina

Economics Letters, 2012, vol. 114, issue 1, 64-68

Abstract: In addition to containing stable information to explain inflation, state-local expenditures also have a larger share of the forecast error variance of US inflation than the federal funds rate. Non-defense federal expenditures are useful in predicting real output variations and, starting from the early 1980s, also present a larger share of the forecast error variance of US real output than the federal funds rate.

Keywords: Information value; State-local expenditures; Forecast error variance decomposition (search for similar items in EconPapers)
JEL-codes: E31 E62 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: An Empirical Investigation of US Fiscal Expenditures and Macroeconomic Outcomes (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:1:p:64-68

DOI: 10.1016/j.econlet.2011.09.017

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